Finding Text
Statement of Condition: Several of the project?s rental units are not in compliance with housing quality standards. Criteria: HUD conducted a physical inspection of the Project?s units in October 2021 which resulted in a failing score. Cause: The organization outsourced the maintenance function to a third party property management company and did not adequately monitor their work to ensure that they were properly maintaining the project?s real estate. Effect: The project is in breach of its agreement with HUD to maintain safe and decent housing for tenants. In addition, because the project failed the prior HUD physical inspection, the project is now required to do extensive reporting to HUD until the identified issues are fully corrected. Context: HUD inspected all of the project?s units in 2021 to follow up on the previous failed property inspection from 2019 and the project received an unsatisfactory rating again. Recommendation: We recommend that the organization continue to correct the deficiencies cited in the HUD report and review and revise procedures related to unit inspections to ensure that unit deficiencies are identified promptly and corrected. Views of Responsible Officials and Planned Corrective Actions: We agree with the auditor?s recommendation. The organization is working diligently to correct the identified deficiencies; however, supply chain issues are affecting the timeline of when repairs can be completed, and this has been communicated to HUD.